German consumer goods industry leads competitiveness index despite cost pressures

The German consumer goods industry has secured the top position in the 2026 industry competitiveness index released by Alvarez & Marsal and the German Society for Management Research. Despite leading other sectors with an index score of 8, the industry's competitive position has declined from 13 points in 2024.

Key challenges identified include rising cost pressures and the need for increased operational speed. Approximately 89 percent of consumer goods companies now prioritize their cost position as a critical factor for competitiveness, marking a 15 percentage point increase from the previous year. Additionally, 82 percent of companies view speed as a vital competitive factor due to volatile demand and short product cycles.

While 74 percent of companies recognize artificial intelligence as a strategically relevant factor, only 47 percent are currently utilizing AI-based demand and inventory forecasting. This represents a significant gap in leveraging technology to enhance competitiveness.